1/02/2013

The Best And Most Recommended Healthcare Stocks For 2013

Herbalife (HLF)Best Yielding Healthcare Stock

Best
Healthcare stocks with buy ratings originally published at "long-term-investments.blogspot.com". This month I like
to discover the best recommended stocks from all sectors at the capital market.
I like to start with the healthcare sector, one of the biggest ones. Here are
some facts for our statistical lovers:

The
healthcare sector has 540 companies with a health related business model. The
total market capitalization of all stocks is 64.5 trillion. Stocks from the
healthcare sector have an average P/E ratio of 20.78 and they pay in average a
dividend yield of 3.37 percent. The best dividend paying industries are major
drug manufactures and Biotechnology companies. Biotech’s are now the second
best yielding category with an average industry yield of 2.13 percent.

Below
is a small list with some fundamentals about the most recommended higher
capitalized stocks from the healthcare sector. I excluded stocks with a market
capitalization below USD 2 billion because I think the risk should be much
higher as for mid-capitalized stocks.These are the results: Nine of the 20 best rated stocks pay dividends. Half of the results are large caps and all stocks have positive
expected mid-term earnings per share growth. Yes, healthcare is still a growth opportunity.

Herbalife (NYSE:HLF) has a market capitalization of $3.56 billion. The company employs 5,100 people, generates revenue of $3.454 billion and has a net income of $412.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $634.12 million. The EBITDA margin is 18.36 percent (the operating margin is 16.28 percent and the net profit margin 11.94 percent).
Financial Analysis:
The total debt represents 14.08 percent of the company’s assets and the total debt in relation to the equity amounts to 36.35 percent. Due to the financial situation, a return on equity of 78.78 percent was realized. Twelve trailing months earnings per share reached a value of $3.88. Last fiscal year, the company paid $0.73 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 8.48, the P/S ratio is 1.03 and the P/B ratio is finally 6.81. The dividend yield amounts to 3.64 percent and the beta ratio has a value of 1.68.

Long-Term Stock History Chart Of Herbalife (HLF)

Long-Term Dividends History of Herbalife (HLF)

Long-Term Dividend Yield History of Herbalife (HLF)

Sanofi SA (NYSE:SNY) has a market capitalization of $125.26 billion. The company employs 113,719 people, generates revenue of $46.255 billion and has a net income of $6.417 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13.501 billion. The EBITDA margin is 29.19 percent (the operating margin is 16.18 percent and the net profit margin 13.87 percent).
Financial Analysis:
The total debt represents 15.41 percent of the company’s assets and the total debt in relation to the equity amounts to 27.46 percent. Due to the financial situation, a return on equity of 10.42 percent was realized. Twelve trailing months earnings per share reached a value of $2.99. Last fiscal year, the company paid $1.75 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 15.85, the P/S ratio is 2.70 and the P/B ratio is finally 1.69. The dividend yield amounts to 3.57 percent and the beta ratio has a value of 0.94.

Long-Term Stock History Chart Of Sanofi SA (SNY)

Long-Term Dividends History of Sanofi SA (SNY)

Long-Term Dividend Yield History of Sanofi SA (SNY)

Covidien (NYSE:COV) has a market capitalization of $27.33 billion. The company employs 43,400 people, generates revenue of $11.852 billion and has a net income of $1.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.044 billion. The EBITDA margin is 25.68 percent (the operating margin is 20.34 percent and the net profit margin 16.05 percent).
Financial Analysis:
The total debt represents 22.64 percent of the company’s assets and the total debt in relation to the equity amounts to 47.70 percent. Due to the financial situation, a return on equity of 18.66 percent was realized. Twelve trailing months earnings per share reached a value of $3.92. Last fiscal year, the company paid $0.94 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 14.74, the P/S ratio is 2.31 and the P/B ratio is finally 2.58. The dividend yield amounts to 1.80 percent and the beta ratio has a value of 0.85.

Long-Term Stock History Chart Of Covidien (COV)

Long-Term Dividends History of Covidien (COV)

Long-Term Dividend Yield History of Covidien (COV)

Take a closer look at the full list of the 20 most recommended healthcare stocks. The average P/E ratio amounts to 24.61
and forward P/E ratio is 13.46. The dividend yield has a value of 0.71 percent.
Price to book ratio is 7.74 and price to sales ratio 5.35. The operating margin
amounts to 17.35 percent and the beta ratio is 1.02. Stocks from the list have
an average debt to equity ratio of 0.64.

Here is the full table with
some fundamentals (TTM):

Healthcare Stocks With Buy Rating (Click to enlarge)

If you like this list, please give us a Facebook Like, make a tweet or post a comment below!

*I am long HLF. I receive no
compensation to write about these specific stocks, sector or theme. I don't
plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I
have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours. I receive no compensation to write about
any specific stock, sector or theme.

1 comment:

Developments made in medical science are coming at a faster pace in recent times. For patients, this is very beneficial, as a cure for thus far untreatable ailments may be close at hand, potentially saving thousands of lives. At the same time, this could provide a huge opportunity for investors. Which companies have the biggest potential to leap on new drug approvals, and what potential investment opportunities are out there? Can anyone tell me?

Dividend Yield Passive Income Portfolio Holdings

What is a dividend? A dividend is a payment by the company to its shareholders. Normally, a stock pays 4 times a year a quarter dividend in order to participate investors at the company’s success. The amount of dividends in relation to the earnings of a company is called payout ratio. The figure measures the part of the earned money which is paid to the shareholders. A payout ratio of up to 50 percent (half of it's earnings) is a good figure. Sometimes it could be possible that companies can pay 90 percent of its net income due to its business model. Those businesses don’t need much money for growing.

The dividend amount in relation to the price that an investor pays is called the dividend yield. The value measures the return of the investor. A dividend yield of 5 percent (High-Yield) means that the investor receives 5 percent of his investment in cash - pretax within a year. This value is estimated for the full year dividends. Most of the highest yielding dividend stocks have only a big quarter dividend of more than one percent because of it's unsustainable dividends. The capital market expects a dividend dividend cut by the company.

An important date for investors is the ex-dividend date. This is the day on which the new investor doesn’t receive any dividend payments. He must wait 3 month for the next quarter dividend.

By Dividend Yield - Stock, Capital, Investment

What is a Stock? Stocks (also called stock or share) are part of the capital stock of a company. It represents the original equity paid into the company. The capital stock could be traded at well-known stock markets like the New York Stock Exchange (NYSE) or NASDAQ.Every stock or share represents a partition ownership to the company. A stock owner has the ability to receive dividends and has a voting right for the annual general meeting (AGM). The stock owner participates on the business opportunities and risks.

There are two main stock types available: common stock and preferred stock. A common stock gives the shareowner the ability to vote at the annual general meeting and to receive dividends. A preferred stock has no voting right but for compensation, a higher claim for earnings and assets.

By Dividend Yield - Stock, Capital, Investment

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